• Project Title:
  • Oversight of Highway Contract Routes - Insurance
  • Start Date:
  • Monday, May 21, 2018
  • Estimated Report Release Date:
  • November 2018

Highway transportation is the surface transportation of mail by means other than bus, rail or water. Service may be between two or more designated points (over the road) or in a local metropolitan area (shuttle service). Highway transportation contracts may include requirements for in-route distribution of mail in specially designed and equipped vehicles, box delivery, collections and other services similar to those provided by rural carriers.

The Surface Transportation Category Management Center and Surface Transportation Operations establish policy for Highway Contract Route (HCR) contract administration and transportation operations. When suppliers are engaged preliminarily in work for the Postal Service they may be required to carry insurance to protect their interest.

Our audit will determine whether Postal Service Contracting Officers (CO) are properly managing HCR contracts (specifically liability insurance requirements) in accordance with policies and procedures.

  • What controls should the Postal Service have in place to ensure that policy coverage is continuous throughout the contract lifecycle and that there is no lapse in coverage?
  • What penalties, besides termination, should the Postal Service impose on suppliers who do not maintain insurance coverage?

Comments (3)

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  • anon

    Insurance is the least of your things to be looking at... How about you folks look at the contracts themselves... 1. Do the contacting officers check in with the using facilites? Are the vehicles size, times and number of deliveries appropriate to getting product where it need to go in a timely manner. 2. Do these contacts interact seamlessly with "current" IOP's, load plans, etc? (sarcasm inserted here...you know a vast majority of the iop's. etc are missing, incorrect or not followed) The answer which screams out to you is...NO. Quit looking at fluff. Look at what usps can do to actually improve delivery... Oh, but that would stepping on toes now. This post presented by a tired person who would like to be "engaged" as the buzz word says. But IOG has fallen so low that you the last outpost of sanity are missing in action... Love to read your response... But don't anticipate that you would ever answer.

    Jun 20, 2018
  • anon

    Thank you for responding to our Audit Asks page. We use this tool to gain knowledge for our current audits, but also as an opportunity to take suggestions for future work. We will consider your suggestions when developing future audit projects. We examine many of the things you suggested, not only within our Supply Management Directorate but also within our Transportation and Delivery Directorates. Our review of Highway Contract Routes (HCR) Insurance was initiated based on prior audit work. During a review of HCR conflicts of interest, the audit team noticed documentation to ensure suppliers maintain liability insurance was not always up-to-date. When suppliers fail to maintain adequate liability insurance; it increases the risk for the Postal Service to be liable for damages or at a minimum being engaged in costly litigation. For more information on our prior audit work, please visit our website (www.uspsoig.gov).

    Jun 25, 2018
  • anon

    RE: HCR OR HIGHWAY CONTRACT ROUTE, AND IS THE USPS PAYING TOO MUCH FOR A HCR. Based on the population of the HCR area and homes in the area is destinated a HCR. In area such as the north and Alaska, 1) the station or PO unit carrying the area of small deliveries, must remain profitable, and if not, 2) a MBU for street delivery in a small rural area as zone or 3) cluster the delivery area or PO unit to another local Post Office. To maintain a profitability in today's market and cost of delivery units, overhead, wages and fuel, cluster a retiring or vacant area to a nearby Post Office Unit. These Post Office Unit usually will have a minimum of 5 Letter Carriers with one part time Rural HCR, for the rural areas. Note: This is not the same as a Contract Post Office.

    Jun 20, 2018

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